|
on Small Business Management |
|
Issue of 2024‒07‒29
24 papers chosen by |
| By: | Amoa-Gyarteng, Karikari; Eserifa, Oyin-Emi |
| Abstract: | This study aims to concisely examine the impact of innovation strategy on the survival of small and medium enterprises (SMEs), focusing on the mediating role of organizational adaptability. Employing an explanatory research design, data were collected through structured questionnaires from SME owners and managers in Kumasi Metro, Ghana. Regression analysis reveals that innovation strategy is significantly related to organizational adaptability, which in turn positively influences SME survival. Therefore, organizational adaptability's mediating role is established, indicating its essential function in SME survival. |
| Keywords: | Innovation strategy, organizational adaptability, SME survival, diffusion of innovation theory, competitive advantage |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:298864&r= |
| By: | Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics) |
| Abstract: | This study explores the challenges of integrating macro, meso, and micro in the articulation of advanced innovation policy and examines, respectively, dimensions of public business support, intermediary organizations, and knowledge transfer. It conducts an integrative review of the pertinent literature and a bibliometric analysis of 440 articles. It reveals three major obstacles that seemingly impede the effective integration of macro, meso, and micro in contemporary policymaking and socioeconomic analyses: entrenched boundaries between different thematic areas, methodological discrepancies, and the relative lack of integrated theoretical models. These factors contribute to the absence of unified functional hubs focused on microlevel interventions. The proposed Institutes of Local Development and Innovation (ILDIs) could mitigate these challenges as they are presented as multilevel policy instruments intended to provide support to businesses—particularly to those facing chronic and structural problems. |
| Keywords: | Macro-meso-micro; Public business support; Intermediary organizations; Knowledge transfer; Microfirms; Multilevel policy; Institutes of Local Development and Innovation (ILDIs) |
| JEL: | D83 G38 L53 |
| Date: | 2024–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:ris:duthrp:2024_004&r= |
| By: | Shi, Xiangyu; Zhang, Xin |
| Abstract: | We study how extreme (high) temperatures affect firm dynamics---entry, exit, and aggregate productivity---in Chinese manufacturing sectors. Existing studies focus on the effects on incumbent firms (intensive margin), while we examine the effects on entry and exit (extensive margin), and their relationship with the aggregate productivity. Extreme temperatures lower the productivity of incumbent firms (productivity effects), while selecting firms with higher productivity to survive (selection effect). Exploiting a unique data set on the registration information of the universe of firms allows us to document this novel general equilibrium mechanism, whereby resources released by eliminated low-productivity firms are reallocated to firms with higher productivity. Thus, the combined effects on aggregate productivity are muted, a finding that differs from the consensus in the literature that extreme (high) temperatures worsen productivity and economic outcomes. We quantify these effects using a heterogeneous firm framework a la Melitz (2003). The results shed light on the importance of firm dynamics in stipulating climate policies. |
| Keywords: | C15, D21, D22, E23, Q56 |
| JEL: | C1 D2 E2 L2 Q5 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121351&r= |
| By: | Gartzou-Katsouyanni, Kira |
| Abstract: | Scholars of economic development in the Global South and of industrial policy in the Global North are increasingly advocating top-down policies by a strong, activist state to promote growth and innovation. Instead, we argue there is much to learn from firm-centered approaches about how the main economic decision-makers, namely, firms, engage with the constraints and opportunities that they face. This is particularly important in the semi-periphery, where public authorities do not always have the capacity, resources, and political support required to play the activist developmental role suggested in the literature. This introduction to the special issue develops the concept of the semi-periphery, showing that it can foster knowledge exchange across the North–South divide and promote innovation in analyses of the dynamics of economic development. It also presents the multilevel perspective through which the special issue accounts for cases where firms were able to overcome semi-peripheral constraints. We argue that carving out economic opportunities in the semi-periphery often requires the activation of the initiative of local firms, which form alliances with other actors from the private, public, and non-profit sectors. Rather than producing economic innovation directly, macro-institutions facilitate those efforts by providing a governance architecture that makes it easier for firms to form alliances and innovate. |
| Keywords: | governance; institutional change; semi-periphery; innovation; firms; political economy; multilevel approaches; cooperation; Springer deal |
| JEL: | R14 J01 |
| Date: | 2024–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123742&r= |
| By: | Nguyen, Quang Khai |
| Abstract: | This study investigated the impact of the COVID-19 crisis on firm risk and performance in different country-level governance qualities in the MENA region. Analyzing a sample of 739 non-financial listed firms in 12 MENA countries for the period 2011–2020, we found that the COVID-19 crisis negatively impacted the performance of firms, especially low-performance firms, in most industries, and increased firm risk in general. Moreover, we found that national governance quality plays an important role in mitigating the negative impact of the COVID-19 crisis on firm operations. Specifically, national governance quality reduces the negative impact of the COVID-19 crisis on firm performance and the positive impact of the crisis on firm risk. The results are consistent with our contention that national governance quality contributes to creating a positive environment for businesses activities and reducing economic shocks. |
| Keywords: | COVID-19; performance |
| JEL: | G0 G3 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121001&r= |
| By: | Shi, Xiangyu; Wang, Chang |
| Abstract: | Input-output linkages among sectors and firms are largely overlooked when assessing regulatory policies. Using a carbon emissions regulation in China as an example, we find that the regulation facilitates the transition to green technologies and reduces entry and carbon emissions in the regulated sectors with large carbon emissions. We also find unintended spillovers via the input-output network, resulting in more entry and innovation in the downstream sectors; and less entry and innovation in the upstream sectors. These facts can be rationalized by a firm-dynamics model with input-output linkages. The results of quantitative exercises are much different when taking input-output linkages into account. |
| Keywords: | carbon emissions regulation; firm dynamics; innovation; input-output networks |
| JEL: | C1 D2 E2 L2 Q5 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121359&r= |
| By: | Jinkyong Choi; Jorge Guzman; Mario L. Small |
| Abstract: | Sociologists have shown that “third places” such as neighborhood cafés help people maintain and use their network ties. Do they help local entrepreneurs, for whom networks are important? We examine whether the introduction of Starbucks cafés into U.S. neighborhoods with no coffee shops increased entrepreneurship. We find that, when compared to census tracts that were scheduled to receive a Starbucks but did not do so, tracts that received a Starbucks saw an increase in the number of startups of 5.0% to 11.8% (or 1.1 to 3.5 firms) per year, over the subsequent 7 years. There was no effect on neighborhoods with prior cafés. A partnership between Starbucks and Magic Johnson focused on underprivileged neighborhoods produced larger effects. Starbucks locations with more square footage and those with a higher number of visits also produced larger effects. |
| JEL: | L26 R23 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32604&r= |
| By: | Croce, Giuseppe; Piselli, Paolo |
| Abstract: | The gap in the employment dynamics between larger urban areas and other areas has widened dramatically in recent decades in advanced economies. A proposed explanation for this trend argues that the technological change occurs with greater intensity in larger urban areas than in medium and small cities, since it interacts with the urban agglomeration forces. In particular, more qualified, better paid jobs are expected to grow more in larger cities. This work focuses on the dynamics of most paying jobs and their spatial distribution across different-size cities in Italy in the period between 1993 and 2016. We investigate whether their share has grown and whether its growth has actually been concentrated in the larger cities. Using Bank of Italy’s Survey of Household Income and Wealth (SHIW), we find that the share of most paying jobs has increased in aggregate but its growth in large cities was much weaker than in medium and small cities and even negative after 2008. We also estimate a probit IV model of the worker’s probability of being employed in a most paying job across cities. The results show that being in a bigger city does not increase the chances of getting a better paid job. Furthermore, a shift-share decomposition reveals that the weak growth of most paying jobs in larger cities is only partly explained by the sectoral shifts. Our evidence can be explained by the slow diffusion of new technologies in the Italian economy. Moreover, it is consistent with studies showing the poor performance of the largest urban economies in Italy. |
| Keywords: | employment change, technological change, most paying jobs, cities, local labour markets, agglomeration |
| JEL: | J24 J31 O14 O18 O33 R11 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121228&r= |
| By: | F. Aresu; E. Marrocu; R. Paci |
| Abstract: | This paper investigates the economic impact of European Structural and Investment Funds (ESIF) for 262 EU NUTS2 regions over the period 2000-2019. Differently from previous contributions, we focus on the impact of ESIF on regional Total Factor Productivity (TFP) growth, which allowed us to account for other sources of regional investments. A relevant contribution of this study is the thorough examination of the effect of the four main funds included in ESIF on the productivity of a comprehensive set of EU regions. Results show the prevailing effectiveness of the European Regional Development Fund (ERDF), featuring a great deal of heterogeneity over time and across EU geographic areas. Moreover, by analyzing the role played by the European Agricultural Fund (EAFRD) on the TFP of the agricultural sector, we found that its growth impact crucially depends on the initial level of regional sectoral TFP. Our results contribute to a deeper understanding of ESIF economic impact and suggest policy implications for enhancing their contribution to regional economic development. |
| Keywords: | European Structural and Investment Funds;regional development;Spatial Error Model;European Union |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202412&r= |
| By: | Resta, Emanuela; Logroscino, Giancarlo; Tafuri, Silvio; Peter, Preethymol; Noviello, Chiara; Costantiello, Alberto; Leogrande, Angelo |
| Abstract: | The following article analyses the relationship between the mental health index and the variables of the Environment, Social and Governance-ESG model in the Italian regions between 2004 and 2023. First of all, a static analysis is proposed aimed at identifying trends relating to mental health in the Italian regions with indication of the regional gaps. Subsequently, a clustering with k-Means algorithm is proposed. Below is a comparison of 11 machine learning algorithms for predicting the performance of the mental health index. Finally, the article offers some economic policy suggestions. The results are critically discussed in light of the scientific literature |
| Keywords: | Mental Health Index, Machine Learning, ESG, Regional Inequalities |
| JEL: | I11 I12 I13 I14 I15 I18 |
| Date: | 2024–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121204&r= |
| By: | Anna Valero; Bart van Ark |
| Abstract: | Comparatively sluggish productivity growth is one of the UK's biggest policy challenges. Past strategies to solve the problem have lacked both sustained commitment and proper evaluation. Anna Valero and Bart van Ark call for a growth and productivity institution to inform and coordinate policies over the long term. |
| Keywords: | productivity, uk economy, growth, industrial strategy |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepcnp:685&r= |
| By: | Okeke, Clement |
| Abstract: | The impact of Information and Communication Technology (ICT) on firm performance has become the subject of active research in the last four decades. This study’s goal is to review the effect of ICT on the financial performance of firms in the consumer goods sector as measured by their Return on Capital Employed (ROCE) with firm size added as a control variable. For a period of ten (10) years, from 2013 to 2022, the study used thirteen (13) listed consumer goods companies in Nigeria. An ex-post facto research approach was used, and secondary data were gathered from the companies’ annual reports for the period under review. EViews version 12 was used to do correlation and regression analysis. The findings show that Funding for ICT Hardware (FICTH)and Funding for ICT Software (FICTS) have a negative and insignificant effect on the financial performance of listed consumer goods firms in Nigeria. The study suggests that stakeholders, especially managers in the consumer goods sector should always review all options carefully before venturing into any procurement of additional computer hardware or software bearing in mind the negative impact of their ROCE. |
| Keywords: | Information and Communication Technology (ICT), Return on Capital Employed |
| JEL: | G3 G30 L2 L8 L86 L89 O14 O30 O32 |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121293&r= |
| By: | Han, Seoni (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | Digital technology is gaining attention as a game changer to reshape the landscape of Africa’s financial industry. This widespread adoption of mobile money has significantly broadened financial accessibility and reduced the proportion of the financially excluded population. The transformation of the financial industry was further accelerated by the COVID-19 pandemic with a surge in online payments and increased fintech activities. Digital finance has arisen as a solution to address the economic and non-economic constraints in the financial market, such as transaction costs, information asymmetry between financial institutions and customers, and uncertainty in outcomes of financial services. Digital finance strengthens economic resilience of individuals and households by offering a broader spectrum of strategies for risk mitigation and risk sharing. In Kenya, mobile money penetration has facilitated financial management for low-income groups, increased women’s labor market participation, and reduced poverty rates. The access to finance of small and medium-sized enterprises is especially crucial in developing countries. Limited access to financial services poses significant challenges for SMEs, obstructing their ability to operate seamlessly, increase sales, and boost exports. In Sub-Saharan Africa, only about one-fifth of SMEs can gain access to loans through traditional financial institutions. Han et al. (2023) conducts on an empirical analysis of Kenyan firms and finds that the firms’ use of mobile money is positively correlated with their financial accessibility, and their investment activities in both tangible assets (fixed assets) and intangible assets (R&D expenditure). Korea has the potential to strengthen its cooperation with Africa in digital finance and the financial sector by actively participating in international initiatives for financial inclusion, promoting more private investments into the financial sector or fintech industry in Africa, enhancing Africa's digital competitiveness in digital infrastructure and skilled workforce, and finally supporting digital transformation in the context of regional integration. |
| Keywords: | Africa; Digital technology; Digital Finance; Financial Inclusion |
| Date: | 2024–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2024_015&r= |
| By: | Fotios Kalantzis; Salma Khalid; Alexandra Solovyeva; Marcin Wolski |
| Abstract: | Using a novel cross-country dataset, which merges firm-level financials with information on firms’ participation in the European Unions’ Emissions Trading System (ETS), we investigate how firm performance is affected by tightening of environmental policies that put a price on pollution. We find that more stringent policies do not have a strong negative impact on the profitability of ETS-regulated or non-ETS firms. While firms report an increase in their input costs during periods of high carbon prices, their reported turnover is also higher. Among ETS-regulated firms which must purchase emission certificates under the EU ETS, tightening of climate policies in periods of high carbon prices results in increased investment, particularly in intangible assets. We establish robustness of our results using a quantile regression analysis, ensuring our key findings are not driven by distributional irregularities. Our findings provide support for the benefits of EU ETS on accelerating firms’ climate transition, while keeping firm-level financial costs at bay. |
| Keywords: | climate finance; climate change; decarbonization; firm-level analysis; Emissions Trading System (ETS) |
| Date: | 2024–06–28 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/135&r= |
| By: | Jing Xie (Department of Finance and Business Economics, Faculty of Business Administration, University of Macau) |
| Abstract: | I uncover that equity mutual funds with significant investments in publicly traded family firms (pro-FF funds) exhibit superior performance compared to other funds. This effect is more pronounced when family firms are harder to value or less liquid. Pro-FF funds yield higher returns on family firm investments than other funds do on similar holdings. The net purchasing activities made by pro-FF funds have predictive power for future stock returns and earnings announcement surprises of family firms. One plausible explanation for this informational advantage lies in pro-FF funds focusing on family firms in closer geographical proximity. The positive impact of FF investment on fund performance holds for all three subsets of family firms that are managed by founders, descendants, or professional CEOs. |
| Keywords: | Mutual funds; Informed trading; Family firms; Ownership Structure; Insiders |
| JEL: | G11 G23 G32 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:boa:wpaper:202411&r= |
| By: | Geylani, Pinar Celikkol; Park, Timothy A.; Restrepo, Brandon J. |
| Keywords: | Productivity Analysis, Research And Development/ Tech Change/Emerging Technologies, Production Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343704&r= |
| By: | Thomas J. Chemmanur (Carroll School of Management, Boston College); Zeyu Sun (School of Accounting, Capital University of Economics and Business); Jing Xie (Department of Finance and Business Economics, Faculty of Business Administration, University of Macau) |
| Abstract: | We find that firms are more inclined to distribute dividends when a larger fraction of other firms held by the same common institutional blockholder (CIB) have paid dividends. This effect also holds for the level of and the change in dividend payment. We establish causality using exogenous perturbations in peer relations. In particular, we show that the similarity in firms’ dividend policies becomes greater after the exogenous creation of new peer relations between them due to asset managers’ mergers and Russell index reconstitutions. The peer effect is stronger when peers have maintained relations with the focal firm for a longer period or when focal firms’ stock liquidity is higher. We also find that a CIB is more likely to vote against manager sponsored proposals in nondividend-paying investee firms if a larger proportion of the CIB’s other investee firms have paid dividends. Overall, our results provide fresh evidence of dividend clienteles. |
| Keywords: | dividend policy; peer effects; common institutional blockholders; shareholder voting; dividend clienteles. |
| JEL: | G35 G23 G20 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:boa:wpaper:202407&r= |
| By: | Söhnke M. Bartram; Gregory W. Brown; René M. Stulz |
| Abstract: | Average idiosyncratic volatility and firm idiosyncratic volatility increase with the number of listed firms. Average industry idiosyncratic volatility increases with the number of listed firms in the industry. We ex-plain the relation between idiosyncratic volatility and the number of listed firms through Schumpeterian creative destruction. We show that Schumpeterian creative destruction increases as the number of listed firms increases. However, there is no consistent evidence of an incremental effect of the number of non-listed firms on idiosyncratic volatility either in the aggregate or at the industry level, suggesting that listed firms play a unique role in the dynamism of the economy. |
| JEL: | G10 G11 G12 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32568&r= |
| By: | Hafish, Muhammad; Famiola, Melia |
| Abstract: | The purpose of this paper is to focus on the contribution of stakeholder engagement to Sustainable innovation (SI) within the context of sustainable food and agriculture context. It investigates whether engagement with different stakeholders promotes sustainable innovation. The empirical analysis is based on a distinctive single case study of sustainable-oriented ventures that successfully deliver sustainable impact within their SI. A qualitative study, which an abductive approach was performed in order to delve the stakeholder engagement and its relationship with the type of SI. We use multiple data sources. Primary data such as semi-unstructured interview with several representative innovating ventures. Then, secondary data from multiple sources gathered to acquire deeper knowledge and information to capture the retrospective data about SI journey and development process of the ventures. Result showed that proactive role in venture to engage with various and wider stakeholders is needed to foster the SI particularly in system-building SI. Moreover, sustainability-oriented innovation (SI) as a journey and its characteristics constitutes from on practices that constitute day-to-day SI activities, strategies, activities, and linkages that resulting SI output and outcome. Particularly, stakeholders are part of these linkages. The wider and various of stakeholders also its engagement in co-creation of SI is affecting the output and outcomes of its SI. This research extends the response to the lack of systematic knowledge about stakeholder collaboration in SI. This paper provides a fine-grain qualitative analysis, a single case study, and identifies several types of stakeholders with various roles in the SI. |
| Date: | 2024–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:bp94f&r= |
| By: | Thomas Fackler; Oliver Falck; Moritz Goldbeck; Fabian Hans; Annina Hering |
| Abstract: | We investigate differences in labor demand between German automotive firms specializing in green propulsion technology and those with a focus on combustion engines. To this end, we introduce a firm-level labor demand index based on the near-universe of online job postings and firms’ patent portfolios. Workforce adjustments are a crucial dimension of technology-related structural change, and labor demand as a highly reactive decision parameter is an ideal measure to detect employment adjustments. Our index enables us to distinguish labor demand by firms’ greenness in real-time, a notable advantage over survey or administrative data. In a difference-in-differences setup, we exploit the poly-crisis triggered by unexpected escalations of trade conflicts and sustained by consequences of the pandemic and the war in Ukraine. We find green firms’ labor demand is significantly and persistently higher than before the outbreak of the poly-crisis, by 34 to 50 percentage points compared to firms with a focus on combustion technology. This gap widens over time and is not driven by unobserved firm heterogeneity. Green firms systematically adjust labor demand towards production and information technology jobs. |
| Keywords: | low carbon technology, firm employment decisions, sustainability, disruptive innovation |
| JEL: | C55 J23 M51 O14 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11160&r= |
| By: | Guillaume Poujade (CITERES - Cités, Territoires, Environnement et Sociétés - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique); Jean-Charles Billaut (LIFAT - Laboratoire d'Informatique Fondamentale et Appliquée de Tours - UT - Université de Tours - INSA CVL - Institut National des Sciences Appliquées - Centre Val de Loire - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, LAAS-ROC - Équipe Recherche Opérationnelle, Optimisation Combinatoire et Contraintes - LAAS - Laboratoire d'analyse et d'architecture des systèmes - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INSA Toulouse - Institut National des Sciences Appliquées - Toulouse - INSA - Institut National des Sciences Appliquées - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse); Denis Martouzet (CITERES - Cités, Territoires, Environnement et Sociétés - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique); Jean-François Raze (LEDi - Laboratoire d'Economie de Dijon [Dijon] - UB - Université de Bourgogne - UBFC - Université Bourgogne Franche-Comté [COMUE]) |
| Date: | 2024–03–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04623589&r= |
| By: | I. Etzo; R. Paci; C. Usala |
| Abstract: | Our study examines the relationship between university student mobility and local economic dynamics. Universities are pivotal in shaping societies and economies as hubs of knowledge creation, innovation, and cultural exchange. While recent research underscores the significant impact of university students on local development, there is a notable gap in understanding the distinct effects of mobile versus resident students on the local economy. Using data from 90 NUTS3 provinces in Italy between 2013 and 2019, we investigate the spatial inequalities generated by student mobility. Our focus is on secondlevel university students, who are closer to entering the labor market and thus have a more immediate impact on the local economy. Employing a standard fixed effects growth model, our findings reveal that incoming students significantly boost the economic growth of the destination province, particularly in the Center-North regions (brain gain). Conversely, the southern provinces suffer reduced growth due to the loss of talented students (brain drain). Thus, student mobility exacerbates the enduring spatial disparities in Italy contributing to uneven economic development across regions. |
| Keywords: | spatial disparities;brain drain;mobile university students;growth model |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202411&r= |
| By: | Shi, Xiangyu |
| Abstract: | Why China was not the origin of the Industrial Revolution but rose from imperial dynasties and experienced a growth miracle in the past four decades? We find that its root is China's imperial examination system (keju), which explains the fall and rise of historical, modern, and contemporary China. Using three instrumental variable approaches, we find that keju significantly facilitates contemporary innovation and business creation, by raising the contemporaneous level of human capital, shaping an innovative and productive culture, and fostering efficient institutions. Keju had positive effects on the development of modern China before the People's Republic of China era, but its effects were most salient after the economic reform in 1978. In historical periods, keju diverted talents away from scientific/technological sectors, leading to sluggish development in the Ming and Qing dynasties. |
| Keywords: | imperial examination system, human capital, culture, institution, innovation, business creation, China |
| JEL: | D2 E2 J2 N3 O1 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121348&r= |
| By: | Jürgen Janger |
| Abstract: | Abstract:Interrupted supply chains in the wake of COVID-19 and Russia’s attack on Ukraine have highlighted the geopolitical risks of sourcing critical raw materials and products from a small number of authoritarian countries. The EU has initiated a flurry of activities to reduce unilateral dependencies, witnessed by trade, innovation and industrial policy instruments, such as the IPCEIs, the Chips Act and new anti-subsidy measures. This policy brief focuses on fostering technological sovereignty to insure against risks from international trade specifically in critical general purpose technologies. Bundles of innovation, industrial and trade policies enter three consistent policy mixes according to the distance to the technological frontier: for emerging technologies, the frontier policy mix emphasises an improvement in general framework conditions such as a more integrated European capital market. Technologies which lag behind the frontier benefit from coordinated support within the catch-up policy mix, while technologies at risk of losing their position at the frontier fall within the remit of the defensive policy mix. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:wsr:pbrief:y:2024:m:01:i:61&r= |